Governor Ernest Addison announced on Friday that Ghana’s central bank reaffirmed its commitment to a robust monetary policy stance despite recent decreases in inflation rates.
After the monetary policy committee’s meeting, Addison cited uncertainties stemming from exchange rate fluctuations, utility tariff hikes, and rising fuel prices as reasons for maintaining vigilance.
Although inflation dropped from 54.1% in December 2022 to 22.8% last month, Addison cautioned that risks remain slightly tilted upwards.
He emphasized the need for robust monetary policies and fiscal consolidation efforts to achieve the targeted inflation range of 13% to 17% by year-end.
“In light of these factors, the MPC has decided to keep the policy rate unchanged at 29%,” Addison stated.
Ghana, the world’s second-largest cocoa producer and an exporter of fossil fuels, has been grappling with longstanding economic challenges.
In May 2023, the country secured a $3 billion bailout from the International Monetary Fund to curb inflation, stabilize the currency, and revitalize the economy.
